The Spanish government has imposed a penalty surcharge of 110 billion won on the world's largest home-sharing platform, Airbnb. It is a strong warning that it will no longer tolerate the harms of overtourism (excessive tourism).
According to Reuters and Spain's El País on the 15th local time, the Spanish Consumer Rights Ministry imposed a fine of 64.1 million euros (about 110 billion won) on Airbnb for listing unlicensed illegal tourist accommodations on its platform. It is the second-largest penalty surcharge ever imposed by Spanish authorities related to violations of consumer rights.
This action follows an administrative order in May directing Airbnb to delete about 65,000 listings for violating regulations. Under current Spanish law, any accommodation seeking to operate short-term rentals for tourists must obtain approval from local authorities and be issued a unique registration number.
However, an investigation by Spanish authorities found that among 65,122 listings on the Airbnb platform, valid license numbers were missing or fake numbers were detected that did not match the authorities' databases. Some listings did not even have clear host information. The Consumer Rights Ministry explained the basis for the action, saying, "These illegal accommodations provided false information to consumers and disrupted the legitimate housing market."
Pablo Bustinduy, Spain's Consumer Rights Minister, issued a statement the same day sharply criticizing Airbnb. Minister Bustinduy said, "Amid a housing crisis that is pushing thousands of households across Spain to the brink, some corporations have amassed enormous wealth with a business model that drives people out of their homes." He added on social media (SNS), "No corporation, no matter how large, can place itself above the law," and "There is no compromise when it comes to the right to housing."
Behind the Spanish government's hard-line response lies a severe housing shortage. According to real estate industry statistics, the average monthly rent in Spain, which was 553 euros (about 800,000 won) in 2014, surged to 984 euros (about 1.43 million won) in 2024, jumping nearly 78% over 10 years. Popular tourist cities such as Barcelona, Madrid and Málaga led the rise, with annual increases reaching double digits.
Real estate experts pointed to rental yield gaps as the main reason for this phenomenon. Citing experts, El País reported that even for the same home, if the owner opts for short-term tourist rentals on Airbnb instead of long-term monthly rent to Spaniards, revenue can soar up to fourfold. Travelers have short stays and low price sensitivity. In contrast, locals are sensitive to housing costs relative to income, and if they sign a lease for six months or more, they are eligible for tenant protections guaranteed by the Spanish government.
For these reasons, since the end of the pandemic, landlords have rushed to evict tenants and shift their listings to the home-sharing market. Even in major cities like Madrid and Barcelona, long-term rental supply for local residents has dried up. The shortage of supply directly led to soaring rents. In major cities, as the exploding number of tourists pushes into residential areas, local residents are being driven to the outskirts, unable to afford skyrocketing monthly rents. The gentrification phenomenon, where longtime residents are displaced from their lifelong neighborhoods, is accelerating.
The fallout from housing issues quickly morphed into anti-tourism sentiment. In July, thousands of Barcelona residents sprayed tourists with water guns and chanted, "Go home." Even in resort destinations like the Canary Islands and Mallorca that rely on tourism, residents staged organized protests, blocking accommodation entrances with chains.
Barcelona Mayor Jaume Collboni unveiled a drastic measure, saying he would "cancel all 11,015 short-term apartment rental permits in the city by Nov. 2028." The regulation goes beyond halting new permits to forcibly converting even existing legally operating accommodations to residential use. The Constitutional Court recognized the legal effect of this measure.
The Guardian said, "The fine sends a strong message that the Spanish government prioritizes the public interest of protecting housing rights over corporate profit," adding that "depending on the legal battle's outcome, it will have significant repercussions on regulatory policies in other European countries." Reuters reported, "European authorities are tightening their scrutiny of global corporations that ignore consumer rights and local regulations."
Experts said the case Will be a critical turning point for the sharing-economy business model. Home sharing, once hailed as an icon of innovation, has now become a regulatory target seen as threatening urban housing ecosystems around the world.
New York in the United States has enforced Local Law 18 since Sept. 2023. The law effectively bans short-term rentals of entire apartments when the owner is not present. According to a report by the New York City Office of Special Enforcement (OSE), Airbnb short-term rental supply in New York has evaporated by nearly 90% since the law took effect. It is effectively an exit from the market.
Florence, Italy, has banned new registrations of short-term rentals within its UNESCO World Heritage historic center. Starting this year, the Italian government has mandated that all short-term rentals display a "national identification code (CIN)," and violations can incur fines of up to 8,000 euros (about 11.6 million won). The aim is to prevent tax evasion and shut down illegal operations at the source.
Airbnb and some experts countered that "tightening the screws on home sharing will only raise hotel prices and cannot be a fundamental solution to housing supply issues." According to U.S. travel research corporation Skift, in the year after New York City implemented Airbnb regulations, the average hotel room rate in New York rose about 7.4%, hitting a record high. There are also concerns that higher barriers for budget travelers and families seeking affordable lodging could reduce overall tourism revenue. An Airbnb Spokesperson told Reuters, "The Spanish government's action violates current regulations," adding, "We will formally object in court and plan to appeal."